Christy Balita
Research expert covering the Philippines
Real estate industry in the Philippines - statistics & facts
The real estate industry is a key driver of the Philippine economy, generating gross value added of about 536 billion Philippine pesos in 2022. Due to the growing middle-class population and the sustained remittances from overseas Filipino workers (OFWs), Filipinos' purchasing and investing power in real estate properties had been gradually increasing in recent years.
However, the exodus of households from rural areas left the demand for affordable housing at an all-time high. As a result, there has been a growing and constant demand for socialized and low-cost housing among low-income families. On top of that, the Philippines’ geographical location makes it susceptible to natural disasters, further challenging the country’s housing situation. To address the housing gap, government agencies and the private sector adopted a resolution that would expedite the inventory of idle government lands and fast-track the development and release of socialized housing for the growing number of informal settlers.
Retail real estate has also shown improvements in the vacancy rate, especially in the cities of Taguig and Makati, where most shopping malls and retail outlets are located. Food, beverage, clothing, and apparel will continue to lead the country's upcoming retail real estate supply.
Residential real estate in the Philippines
Residential real estate in the Philippines comprises a wide range of residential properties, from public and private housing to mid-range subdivisions, condominiums, and high-class villages. In 2022, a survey revealed that most Filipino households live in a single-house unit, with more than half owning the property or having an owner-like possession. For metropolitan cities like Metro Manila, renting apartments, purchasing rent-to-own units in subdivisions, and taking a lease in a condominium is quite common. The average selling price would depend on the area of the property, reaching as much as 225,000 Philippine pesos per square meter for a condo unit.However, the exodus of households from rural areas left the demand for affordable housing at an all-time high. As a result, there has been a growing and constant demand for socialized and low-cost housing among low-income families. On top of that, the Philippines’ geographical location makes it susceptible to natural disasters, further challenging the country’s housing situation. To address the housing gap, government agencies and the private sector adopted a resolution that would expedite the inventory of idle government lands and fast-track the development and release of socialized housing for the growing number of informal settlers.
State of commercial real estate
Commercial real estate, composed of office space, industrial, retail, and hospitality properties, has slowly recovered from the impacts of the COVID-19 pandemic, and was expected to continue showing signs of recovery in the next years as companies re-occupy office spaces. Office space demand remains to be dominated by the IT-BPM sector, although the Philippine offshore gaming operators (POGO) industry was expected to return in the coming months.Retail real estate has also shown improvements in the vacancy rate, especially in the cities of Taguig and Makati, where most shopping malls and retail outlets are located. Food, beverage, clothing, and apparel will continue to lead the country's upcoming retail real estate supply.
